RENEWABLE NATURAL GAS (RNG)
FOR TRANSPORTATION
Frequently Asked Questions
BASICS
What is RNG?
RNG (renewable natural gas) is a key
emerging fuel derived from waste.
As organic waste decomposes, it
releases a biogas that is 40% to 60%
methane (CH4). This biogas can be
captured and refined to remove
contaminants and increase its heat
content. The resulting gas, RNG, can
be used in place of or mingled with
geologic or fossil natural gas (NG) in
pipelines, fueling stations, and storage
tanks, or as a “drop-in” fuel requiring no
engine modifications in NG vehicles.
What’s the difference between
biogas, biomethane, and RNG?
Biogas is the raw gas produced by the
breakdown of organic materials in an
oxygen-free (anaerobic) environment.
After removal of contaminants and
other gases, biogas becomes RNG,
which is typically 90%+ methane.
Biomethane is another name for RNG.
What happens to biogas that’s not
converted to RNG?
It depends on the source. On farms,
animal waste is often allowed to
decompose in pits or ponds, where it
produces methane. This methane, a
powerful greenhouse gas (GHG) with
25 times the global warming potential
of carbon dioxide (CO2), is often
released to the atmosphere.
At landfills and water resource recovery
facilities (WRRFs), biogas is produced
from the breakdown of organic waste
and typically “flared” to convert its
methane content to CO2, which
reduces (but does not eliminate) its
global warming potential. Food waste
from restaurants, institutions, and
industrial food processors that is not
delivered to biogas digesters or
composted usually goes to landfills
where it, too, can release methane and
CO2 into the atmosphere.
How is RNG used? RNG can be used
wherever pipeline-supplied NG is used,
including as transportation fuel and to
generate electricity.
Who currently uses RNG? RNG is
used primarily as a transportation fuel
in NG vehicles.
What types of vehicles/engines can
run on RNG? Any engine that
operates on NG can run on RNG.
What infrastructure is needed to
transport and dispense RNG?
Infrastructure for transporting and
dispensing NG can be used for RNG.
RNG is a “drop-in” fuel for NG vehicles.
BENEFITS
Converts waste to a valuable
product. RNG extracts value from
decomposing waste, which can be
used by the producer in a closed-loop
process or sold. Even the byproducts of
RNG processing—nutrient-rich solids
and liquids—have value as a fertilizer.
Reduces GHG emissions. On a
lifecycle basis, RNG can reduce GHG
emissions by 95% as compared to
diesel, giving it a nearly net zero
carbon impact. In cases where biogas
would otherwise be released to the
atmosphere (e.g., open lagoons), RNG
can have a negative carbon impact.
BENEFITS OF RNG
Converts waste to a valuable
product
Reduces GHG emissions
Produces domestic, renewable
fuel from plentiful feedstocks
Reduces odor and runoff
Creates jobs
Enhances fuel diversity
Provides a steady supply of
renewable energy
Supports organizations’ and
fleets’ sustainability goals
Uses existing technologies and
natural gas infrastructure
Produces domestic, renewable fuel
from plentiful feedstocks. According
to the U.S. Environmental Protection
Agency (EPA), the U.S. generated
267.8 million tons of municipal solid
waste in 2017 (or 4.51 pounds per
person per day), more than half of
which (139 million tons) was landfilled.
The remainder was either recycled,
composted, or combusted for energy
recovery. Food waste accounted for the
largest share (~22%) of tonnage sent to
landfills (EPA undated). According to
the U.S. Department of Agriculture
(USDA), animals at feeding
operations—including feedlots and
other confinement facilities—produce
335 million tons of manure (dry weight)
annually in the U.S. (USDA undated).
RNG FOR TRANSPORTATION: FREQUENTLY ASKED QUESTIONS
Reduces odor and runoff. Compared
with uncovered manure storage, RNG
usually eliminates odors. For farm and
livestock operations, anaerobic
digestion can also reduce nitrogen and
phosphorus runoff to groundwater and
downstream waters.
Creates jobs. RNG production can
create technical and support jobs in the
development and operation of digesters
and associated equipment.
Enhances fuel diversity. RNG can be
made from various feedstocks that are
in common supply. Unlike petroleum,
RNG price is not tied to uncertain or
volatile fuel markets.
Provides a steady supply of
renewable energy. Unlike wind or
solar power, weather and climate
conditions do not affect RNG
production.
Supports organizations’ and fleets’
sustainability goals. Compared to
conventional gasoline and diesel, RNG
can reduce GHG emissions by 95%.
Uses existing technologies and
infrastructure. Biogas can be
upgraded to RNG with existing cleanup
technologies, transported in existing
NG pipelines, compressed and
dispensed at existing compressed NG
(CNG) stations, and used in
conventional CNG vehicles.
WHO CAN BENEFIT FROM RNG?
• Waste generators (e.g., livestock
operators, food processers and
wholesalers, supermarkets, campuses,
restaurants, hospitals) can gain a
sustainable outlet for their waste and
may be able to turn disposal costs into
revenue opportunities.
• Landfills and WRRFs can gain a
revenue stream as well as potential
cost savings from heat and/or power
generation.
• CNG project developers and
equipment builders, owners, and
operators can see new business.
• NG providers/utilities can gain a
renewable fuel supply to not only
reduce their system-wide carbon
content, but also provide customers
with a voluntary, renewable fuel option.
• Fleets/vehicle operators can gain a
drop-in renewable fuel for their NG
vehicles as well as an attractive
renewable alternative to diesel fuel for
potential conversions.
• Communities can improve the
sustainability of waste disposal and
vehicular fuel use, thereby enabling a
circular economy.
RNG can be produced and used in a closed-
loop process. Biogas systems use anaerobic
digestion to recycle organic waste, turning it
into energy and liquid and solid coproducts
valuable in agriculture.
RNG PRODUCTION AND
SUPPLY
How is RNG made?
RNG is made from decomposing
organic matter. In the U.S., it is most
commonly produced through anaerobic
(oxygen-free) digestion. The RNG
feedstock—wastewater sludge, animal
manure, or food waste—is placed in a
closed, oxygen-free tank where micro-
organisms break it down into a gas.
The resulting biogas is primarily
methane and CO2.
Because a lot of organic matter (e.g.,
food waste, paper, textiles) ends up in
landfills, landfills themselves act as
digesters, producing landfill gas (LFG).
LFG is composed of methane and CO2,
as well as contaminants. Landfills are a
major source of raw biogas.
Before it can become usable RNG, the
biogas produced through anaerobic
digestion must be upgraded and
conditioned. First, hydrogen sulfide and
water are removed. Then, CO2 is
removed via chemical, pressure, or
membrane processes.
For transportation use, the resulting
RNG can be compressed to make
renewable CNG or super-cooled to
make renewable liquefied NG (LNG).
What are the sources of RNG
supply?
Most U.S. projects are at landfills, but
the number of projects associated with
livestock operations and waste water is
growing. Food manufacturers and
wholesalers, supermarkets,
restaurants, campuses, and hospitals
are also potential sources for RNG.
Landfills Landfills account for more
than 75% of RNG production potential
while accounting for 56% of currently
operational RNG projects (ANL 2020).
Livestock operations Animal manure
can be collected on a single large farm
or combined from several “cluster”
farms and delivered to a single
anaerobic digester for RNG production.
If manure is stored in open lagoons that
emit methane, moving it to enclosed
digesters prevents those emissions.
The RNG produced also displaces
fossil NG that would have been
consumed by NG vehicles, thereby
reducing CO2 emissions. Avoided
methane emissions and displaced
fossil CO2 emissions can produce large
reductions in carbon intensity.
Water resource recovery facilities
Approximately 7% of the U.S.’s
16,000+ wastewater treatment plants
use anaerobic digestion to produce
biogas, most of which is flared or used
to heat the digester and onsite facilities
or generate power. Only 14 WRRFS
currently produce RNG that can be
used for transportation (WEF 2018).
November 2020
RNG FOR TRANSPORTATION: FREQUENTLY ASKED QUESTIONS

Some RNG pathways have very low carbon intensity (CI) scores because they capture emissions that would otherwise be released to the atmosphere.
For farms with manure lagoons that currently emit high levels of methane, RNG production can yield negative CI scores . Diagonal lines in bars
represent the range of carbon intensity scores that can be achieved with corresponding RNG projects. (CA = California; CNG = compressed natural
gas; CO2e = carbon dioxide equivalent; g = gram; LFG = landfill gas; MJ = megajoule; RD = renewable diesel; WRRF = water resource recovery facility.)
(ANL GREET)

Other biomass sources RNG can be
produced from crop residues and
energy crops through thermochemical
conversion, co-digestion, and dry
fermentation. These technologies are
used in Europe, but have had limited
application in the U.S. RNG also can
be produced from food waste, either
alone or combined with biosolids from
livestock operations or WRRFs.
Where Is RNG available? Until
recently, RNG was available primarily
in California, where its very low carbon
intensity made it a valuable option for
meeting that state’s Low Carbon Fuel
Standard (LCFS). With California now
restricting out-of-state–produced RNG
from qualifying for its low-carbon
requirements (in order to promote in-
state production), RNG is becoming
increasingly available elsewhere. Some
nationwide fuel retailers are beginning
to supply RNG to their fleet customers
outside of California, and major fleets
like Anheuser-Busch and New York’s
Metropolitan Transportation Authority
have announced plans to use RNG.
Where are RNG projects located?
While RNG is produced all over the
U.S., some states are more active than
others. Landfill-based projects are
concentrated in the central and
Appalachian states. Farm-based
projects tend to be concentrated where
livestock support large industries—the
dairy industry in California, New York,
and Wisconsin; the pork industry in
Iowa, Missouri, and North Carolina; and
the poultry industry in Delaware and
North Carolina. WRRF-based projects
tend to be at larger facilities located in
or near metropolitan areas.
How many RNG projects are
currently in operation, under
construction, and planned? By the
end of 2020, more than 150 projects
are expected to be operational, roughly
80 will be under construction, and 80
more projects will be in various stages
of development in the U.S. Farm-based
projects represent the largest share of
planned projects. California has the
most projects currently under
construction, followed by New York and
Missouri (ANL 2020).
ECONOMIC INCENTIVES AND
COSTS
What are the economic incentives
for stakeholders?
Waste generators Disposing of waste
is costly. Converting it to RNG can turn
that cost into revenue, especially with
the use of investment and production
tax credits and tradable credits for
certified renewable or low-carbon fuels.
Investors, equipment suppliers, and
developers Demand for RNG is
growing, and RNG production requires
a wide range of equipment to process,
store, and transport the fuel. Producing,
installing, and operating that equipment
creates additional sources of revenue,
as well as employment opportunities.
RNG retailers, resellers, or utilities
Because of its low carbon intensity,
RNG can contribute to organizations’
sustainability goals. It can also offset
the use of higher carbon, harder-to-
displace fuels like fossil NG and diesel.
For utilities, resellers, and retailers with
significant investments in the latter
fuels, the addition of RNG offers the
possibility of reducing their products’
net carbon intensity.
Fleets and other end users Many
organizations are deepening their
commitment to sustainability. When
used in heavy-duty trucks, RNG is
typically no more—and potentially
less—expensive than fossil NG or
diesel. RNG is also attractive for its low
carbon intensity and “drop in” capability
for fossil NG vehicles. Plus, RNG’s
advantages are not tied to uncertain or
volatile fuel markets, unproven
technologies, or the need for extensive
new infrastructure.

November 2020
RNG FOR TRANSPORTATION: FREQUENTLY ASKED QUESTIONS
Communities and local officials
Manufacturing, installing, and operating
equipment to process, store, and
transport RNG creates jobs. Those jobs
generate tax revenues, with the effects
rippling through the economy. For
individual livestock projects, replacing
open manure pits or ponds with
covered digesters reduces odors and
possible groundwater contamination.
Are there incentives for producing
RNG? Yes. RNG qualifies for several
types of tax credits and other
incentives.
Federal incentives The Internal
Revenue Service Section 45
Production Tax Credit is available to
producers who convert biogas to
electricity, while the Alternative Fuel
Excise Tax Credit is available to
producers of vehicle fuel.
RNG produced from landfill gas or from
biogas produced at farms or WRRFs
qualifies as a cellulosic biofuel under
the Renewable Fuel Standard (RFS),
enabling it to receive Renewable
Identification Numbers (RINs). RINs
can be traded to companies obligated
to produce or sell renewable fuels.
RNG produced from food waste
qualifies for a less-valuable advanced
biofuel RIN, which can also be traded
to obligated parties.
State incentives RNG may also qualify
for state incentives, the most valuable
of which are credits under California’s
Low Carbon Fuel Standard (LCFS) and
Oregon’s Clean Fuel Standard (CFS).
Both provide significant price support
for RNG produced with a low carbon
intensity (or reduction in CO2 emissions
as compared with the status quo).
While the value of these credits will
depend on market forces, they are
expected to remain at approximately
$200/ton for the LCFS, somewhat less
for the CFS.
Are there incentives for using
RNG? States are beginning to
incentivize the use of RNG. In October
2019, the California Air Resources
Board amended the state’s Heavy-Duty
Vehicle Incentive Program, which
subsidizes the replacement of older,
higher-polluting vehicles with cleaner
alternatives. One restriction for NG
vehicles is that they must be fueled
with California-produced RNG. Several
other states are encouraging utilities to
offer RNG to their customers to help
meet state climate goals.
Increasingly, communities and
businesses view RNG as a key tactic
for meeting their sustainability goals
and demonstrating their commitment to
GHG reduction.
How do incentives affect the cost of
producing RNG? On a project level,
incentives can mean the difference
between profit or loss. Over many
projects, incentives can bring the
average cost of supplying RNG on par
with that of NG from fossil sources.
How does the source of RNG affect
its cost? Because of their size and
ability to produce biogas without a free-
standing digester, landfills can produce
RNG at an average cost of roughly
$0.90–$1.00/diesel gal equivalent
(dge). For individual projects, the cost
can range from $0.40/dge to $2.00/dge.
The cost of RNG produced from
anaerobic digestion of livestock
manure, wastewater, or food waste
tends to be higher and more variable.
Reported values range from less than
$0.30/dge to nearly $4.00/dge. Prices
for other alternative fuels can be found
in the most-recent Clean Cities
Alternative Fuel Price Report.
RNG engages a broad community
of stakeholders and generates
substantial environmental and
economic benefits. By turning
waste into products, RNG can
provide jobs and revenue to local
economies, a drop-in fuel to fleets,
and a bridge to a low-carbon
future using existing vehicles and
infrastructure.
References
ANL (Argonne National Laboratory), Renewable
Natural Gas Database (2020), accessed 9-29-20.
ANL, GREET (Greenhouse gases, Regulated
Emissions, and Energy use in Transportation
Model) (2019).
EPA (U.S. Environmental Protection Agency),
Advancing Sustainable Materials Management:
2017 Fact Sheet (2019), accessed 10-28-20.
USDA (U.S. Department of Agriculture), Natural
Resources Conservation Service, Estimates of
Recoverable and Non-Recoverable Manure
Nutrients Based on the Census of Agriculture
(undated), accessed 9-22-20.
(WEF) Water Environment Federation, Energy:
Water Resource Recovery Facilities—Energy
Generation Trends and Highlights (2018),
accessed 9-29-20.
Other Useful Resources
U.S. DOE, Alternative Fuels Data Center,
Renewable Natural Gas Production
U.S. EPA, AgSTAR: Biogas Recovery in the
Agriculture Sector
U.S. EPA, Landfill Methane Outreach Program
(LMOP)
ANL, AFLEET tool (Alternative Fuel Life-Cycle
Environmental and Economic Transportation
tool)
CONTACT
Marianne Mintz
Principal Transportation Energy
Analyst
630-252-5627
mmintz@anl.gov
November 2020